Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I'm Carol Masser along with Tim Stanevik. Let's get to
Speaker 1: some stocks on the move in the house. Bloomberg News
Speaker 1: Equities reporter Alexandra Semonova.
Speaker 2: Good to have you here. There are some great.
Speaker 1: Good to be here, some big movers today.
Speaker 2: Yeah.
Speaker 3: I realized that if we're not talking about geopolitical headlines,
Speaker 3: then we're talking about an AI deal. And given the
Speaker 3: calm that we're experiencing right now in the headline front,
Speaker 3: I'm going to tell you guys about core Weave, which
Speaker 3: is up about three percent today. This is after it
Speaker 3: struck a twenty one billion dollar deal with Meta Platforms.
Speaker 3: They already have an existing relationship and this is deepening
Speaker 3: that relationship. Core We've now holds thirty five billion dollars
Speaker 3: in contracts with metap, making the tech firm one of
Speaker 3: its largest customers. And the goal here is, of course,
Speaker 3: Meta kind of trying to build out its AI models.
Speaker 3: Core Weave will provide a cloud capacity to Meta from
Speaker 3: multiple data centers powered in part also by Nvidia's systems
Speaker 3: of chips and Meta also up about two point five percent.
Speaker 1: So these are those neo clouds, right, it's kind of
Speaker 1: like outsourcing, right, your.
Speaker 4: Data Centervi Nevius is another one of those.
Speaker 1: But it's like kind of you know, right, for computing power.
Speaker 1: And so I find other folks with.
Speaker 4: Big data, the opposite of the hyperscalers.
Speaker 1: Correct, right, who are doing which is meta?
Speaker 4: And this is a nice Livingston, New Jersey company too.
Speaker 4: Don't forget New Jersey.
Speaker 1: We do it so well.
Speaker 3: Also testament of how intertwined all these companies are.
Speaker 1: That's the thing that makes me very fascinate, right, It
Speaker 1: just you just wonder, you know, real or creating demand.
Speaker 1: And I guess time will tell on this.
Speaker 4: And that's a question about core Weave in its business model.
Speaker 4: Because sixty seven percent of its revenue, according to the
Speaker 4: supply chain function on the Bloomberg terminal, comes from Microsoft.
Speaker 4: Then it's eight percent from meta platforms, five percent from
Speaker 4: out bet, and than one point six from IBM. So
Speaker 4: four customers, basically.
Speaker 1: Yeah, I mean good customers. Right, If you're going to
Speaker 1: have four, those are good ones. But if anything changes
Speaker 1: dramatically in their business situations. That's going to have a
Speaker 1: big impact on COREED. Let's go to Caravana.
Speaker 3: Yeah, I love talking about this company because of its
Speaker 3: turnaround story. It basically came back from the dead. It
Speaker 3: surged ten thousand percent. You guys remember from being a
Speaker 3: four dollars stock to four hundred dollars last year. But
Speaker 3: under pressure now it is sliding. Today looks like it's
Speaker 3: down about two point nine percent, less of a decline
Speaker 3: than earlier in the day, was down as much as
Speaker 3: six point six percent. This is after JP Morgan cut
Speaker 3: its price target on the car retailer. Basically, they slashed
Speaker 3: their estimates for the company's twenty twenty six EBIT top
Speaker 3: They cited weaker than expected industry demand, ongoing higher fuel expenses,
Speaker 3: and kind of general pressure and kind of customers moving
Speaker 3: away from this business model. They are, of course, that
Speaker 3: company that has those car vending machine. I guess their
Speaker 3: expectation is that with higher oil prices and consumers being
Speaker 3: a little bit cash strapped, they're not going to be
Speaker 3: buying those cars.
Speaker 1: Yeah, that kind of makes sense. I don't know. Yeah,
Speaker 1: but this one is I agree with you. I think
Speaker 1: it's just a fascinating story, and it's I almost feel
Speaker 1: like it's a great business school case study, just kind
Speaker 1: of the highs and lows. And definitely this company, let's
Speaker 1: go to Chevron, makes sense to be talking about one
Speaker 1: of the major oil companies here.
Speaker 3: Yeah, so you would think that an increase in oil
Speaker 3: prices would be a boon for some of these companies,
Speaker 3: but it actually was a lot more complicated than that,
Speaker 3: given these shipping blockades and the strait of horror moves.
Speaker 3: Exxon and Chevron lost about six percent of their global
Speaker 3: production in the first quarter. Shells gas output was five
Speaker 3: percent lower, largely because of what is going on in
Speaker 3: the Middle East. So it's been a really difficult quarter
Speaker 3: for them. Analysts are lowering their forecasts actually after these
Speaker 3: reports for Exon and Chevron's first quarter results after the
Speaker 3: company is disclosed about seven billion dollars in mark to
Speaker 3: market or a bit of losses combined. And Jeffrey's analyst said,
Speaker 3: very simply, the Middle East makes it a messy quarter.
Speaker 3: Pretty much the takeaway here.
Speaker 4: Yeah, you know, Chevron, for example, down today but up
Speaker 4: twenty five percent so far this year. You have to
Speaker 4: wonder what's been baked in over the last few weeks,
Speaker 4: those investors have been like, wait a second, we have
Speaker 4: these higher energy prices, we have an issue when it
Speaker 4: comes to supply, a supply shock. You know, we're going
Speaker 4: to buy the stock at this point, I don't know.
Speaker 3: Yeah, So obviously the bar was also high getting the run.
Speaker 4: Up that oil stock's not bad, but neat oil.
Speaker 3: Yeah, we do.
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